Energy for Charities

Energy for Charities and Not-for-Profit Organisations

Small changes mean big savings in energy for charities and not-for-profit organisations.

Every year, charities and not-for-profit organisations are losing money on electricity and gas. Many financial managers are unaware of exemptions, VAT reductions, and available rebates – a situation that is exacerbated by suppliers who often treat charities as small businesses.

Charities and not-for-profits are under pressure to account for their spending, with rigorous reporting structures and pressure to perform. When it comes to utilities and energy for charities and not-for-profits, small changes can mean big savings – which make a big difference to the causes they support. These organisations are often overcharged for electricity and gas, sometimes spanning years. Over and above this, shopping the market for the best rates is often a tall order for busy admin and finance teams.

The reality is, if you don’t keep a close eye on your utility bills, you could very well be missing out on money which could be better spent within other sectors of your organisation. Partnering with Smarter Business means you have a team of experts on-hand to assist with your electricity and gas procurement, management, and strategy requirements. Our experience in the not-for-profit sector gives us intimate knowledge of the structures that should be in place around your energy bills.

Did you know that gas and electricity for charities is in a category of its own, with special discounted rates? If charities don’t keep a close eye on utility bills, they could very well be missing out on money that could be better spent in other areas of the organisation.

Why are charities being overcharged?

• Energy suppliers often neglect to put charities on their correct VAT rates by default
• A recent study revealed that 37% of charities were unaware of the relevant exemptions and reductions
• 74% were unaware that they can claim back on overpayments from up to four years ago

How much are they missing out on?

The normal VAT rate on energy is 20%, but gas and electricity for charities should have a VAT rate of only 5% for gas and electricity used for ‘non-business ’purposes. Charities are also exempt from the Climate Change Levy (CCL), further reducing energy bills by 5%. These reductions can represent significant savings for the organisation.

Gas and electricity for charities: what you can do

Firstly, charities should dig out their energy bills and check their VAT rates. If the VAT rate is the standard 20%, they should take action. Not only should they claim the correct VAT rate going forward, but they can also claim a rebate for money incorrectly charged for up to four years.

As part of our comprehensive service, Smarter Business can advise charities on the correct VAT rates and assist with rebate claims. We are also able to obtain and compare quotes from different suppliers, securing the best energy for charity deals and implementing a strategy to maximise cost-effectiveness.

• Do you have questions around your eligibility for VAT relief?
• Do you want to find out if you qualify for potential savings on your gas and electricity?

Why Smarter Business energy for charities?

If you have questions about your eligibility for VAT relief or want to find out if you qualify for potential savings on your gas and energy bills, contact us today. Your dedicated account manager will assist you in understanding and taking action to implement your energy best practices.